COVID-19 Relief for Canadian Businesses & Music Creators

The Government of Canada, along with lower levels of government and various organizations and associations, have introduced programs and initiatives to help Canadian businesses. Many will offer significant benefits to the professional lighting, video, and live production industry, as well as customers and end-users in the music and cultural sector.

The Federal Government has introduced various employer supports in response to the virus. They include the following:

1. COVID-19 Wage SubsidyBusinesses experiencing a reduction of revenue of at least 15% in March, and 30% in April and May, are eligible for a temporary wage subsidy of 75% of employee wages (up to $58,000 per employee). The program is currently in place for a 12-week period, from March 15 to June 6, 2020. Obviously, the subsidy is intended as an incentive to keep employees working. Details are pending. However, to qualify the employer must be a "Canadian controlled private Corporation" (CCPC) eligible for the small business deduction under the Income Tax Act.

2. Canada Emergency Business AccountThis will only apply if your payroll is under $1 million. In that case, you may be eligible for an interest free loan (line of credit) up to $40,000 (with a quarter of that (up to $10,000) eligible for complete forgiveness).

3. Small and Medium Sized Enterprises Loan and Guarantee Program Loans through financial institutions sought in response to virus related business impacts will be guaranteed by the Business Development Bank of Canada (up to $40 billion in lending).

4. Tax Payment DeferralAll businesses will be permitted to defer, until August 31st, 2020, the payment of any income tax amounts that become owing between March 18th and September 1st, 2020. That applies to tax balances due as well as tax installment. No interest will accumulate on those amounts during the deferral period.

Significant Support for Musicians & CreatorsVarious levels of government, associations, and private businesses are also offering support to Canada's cultural industries amidst these hardships, including the music community, which will ultimately benefit businesses serving the live performance, recording, TV/film, and broadcast industries.

The application portal for the Canada Emergency Relief Benefit (CERB) is now open. CERB provides $500 a week for up to 16 weeks to Canadians who have lost their jobs or source of income because of COVID-19. It provides $500 a week for up to 16 weeks. shorttakes.canadianmusician.com/cerb-portal-now-open/

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